Study shows sleep deprivation ‘costs UK £40bn a year’ through lost working days

Date added: January 14, 2017

A study by Rand Europe, published in November 2016, shows that sleep-deprived workers are costing the UK economy £40 billion per year and face a higher risk of death. The calculation is based on tired employees being less productive or absent from work altogether. Rand Europe, which used data from 62,000 people, said the loss equated to 1.86% of economic growth. The main impact was on health, with those sleeping less than 6 hours a night 13% more likely to die earlier than those getting the “healthy daily sleep range” of 7 – 9 hours. The study evaluated the economic cost of insufficient sleep in the UK, US, Canada, Germany and Japan. UK loses 200,000 working days a year, costing £40bn, or 1.86% of GDP. Germany loses 200,000 working days a year, costing $60bn, or 1.56% of GDP. Marco Hafner, a research leader at Rand Europe and the report’s main author said small changes could make a big difference. If those in the UK currently sleeping under 6 hours a night increased this to between 6 – 7 hours it would add £24 billion to the UK’s economy. Large numbers of people living near UK airports, Heathrow and Gatwick in particular, are subjected to aircraft noise at night, between 11pm and 7am, and many suffer chronic sleep interference or sleep loss as a result.
.Tweet

Sleep deprivation ‘costs UK £40bn a year’

By Katie Hope (Business reporter, BBC News

30.11.2016

.

Sleep-deprived workers are costing the UK economy £40bn a year and face a higher risk of death, says a new study.

The calculation is based on tired employees being less productive or absent from work altogether.

Research firm Rand Europe, which used data from 62,000 people, said the loss equated to 1.86% of economic growth.

The main impact was on health, with those sleeping less than six hours a night 13% more likely to die earlier than those getting seven to nine hours.

The study evaluated the economic cost of insufficient sleep in the UK, US, Canada, Germany and Japan.

And while the impact of tired workers in the UK may sound bad, it still ranked better than both the US and Japan which lost the most working days due to lack of sleep.

The cost of sleep deprivation by country:

US loses 1.2 million working days a year, costing $411bn (£328bn) or 2.28% of GDP

Japan loses 600,000 working days a year, costing $138bn or 2.92% of GDP

UK loses 200,000 working days a year, costing £40bn, or 1.86% of GDP

Germany loses 200,000 working days a year, costing $60bn, or 1.56% of GDP

Canada loses 80,000 working days a year, costing $21.4bn or 1.35% of GDP

According to the study, the “healthy daily sleep range” is between seven and nine hours per night.

The report called on employers to recognise and promote the importance of sleep, urging them to build nap rooms.

It said they should also discourage staff from “extended use” of electronic devices after working hours.

Individuals were advised to wake up at the same time each day and exercise during the day to improve their sleep.

“The effects from a lack of sleep are massive. Sleep deprivation not only influences an individual’s health and wellbeing but has a significant impact on a nation’s economy,” said Marco Hafner, a research leader at Rand Europe and the report’s main author.

Mr Hafner said small changes could make a big difference, saying if those in the UK currently sleeping under six hours a night increased this to between six and seven hours it would add £24bn to the UK’s economy.

Lack of Sleep Costing UK Economy Up to £40 Billion a Year

Lower productivity levels and the higher risk of mortality resulting from sleep deprivation have a significant effect on a nation’s economy.

Sleep deprivation increases the risk of mortality by 13 per cent and leads to the UK losing around 200,000 working days a year.

Increasing nightly sleep from under six hours to between six and seven hours could add £24 billion to the UK economy.

A lack of sleep among U.K. workers is costing the economy up to £40 billion a year, which is 1.86 per cent of the country’s GDP.

According to researchers at the not-for-profit research organisation RAND Europe, sleep deprivation leads to a higher mortality risk and lower productivity levels among the workforce, which, when combined, has a significant impact on a nation’s economy.

A person who sleeps on average less than six hours a night has a 13 per cent higher mortality risk than someone sleeping between seven and nine hours, researchers found, while those sleeping between six and seven hours a day have a 7 per cent higher mortality risk. Sleeping between seven and nine hours per night is described as the “healthy daily sleep range”.

In total, the UK loses just over 200,000 working days a year due to sleep deprivation among its workforce. Productivity losses at work occur through a combination of absenteeism, employees not being at work, and presenteeism, where employees are at work but working at a sub-optimal level.

Marco Hafner, a research leader at RAND Europe and the report’s main author, says “Our study shows that the effects from a lack of sleep are massive. Sleep deprivation not only influences an individual’s health and wellbeing but has a significant impact on a nation’s economy, with lower productivity levels and a higher mortality risk among workers.”

He continues “Improving individual sleep habits and duration has huge implications, with our research showing that simple changes can make a big difference. For example, if those who sleep under six hours a night increase their sleep to between six and seven hours a night, this could add £24 billion to the UK economy.”

The U.S. has the biggest financial losses (up to $411 billion) and most working days lost (1.2 million) due to sleep deprivation among its workforce. This was closely followed by Japan (up to $138 billion, with around 600,000 working days being lost overall). Germany (up to $60 billion, with just over 200,000 working days being lost) and the U.K (up to $50 billion, with just over 200,000 working days lost) have similar losses. Canada was the nation with the best sleep outcomes, but still has significant financial and productivity losses ($21.4 billion, with around 80,000 working days being lost overall).

When looking at GDP, Japan has the largest loss (2.92 per cent) due to sleep deprivation among its workforce, followed by the U.S. (2.28 per cent) and the U.K (1.86 per cent). Canada and Germany have the smallest GDP loss due to worker sleep deprivation (1.35 per cent and 1.56 per cent, respectively).

The report is in part based on VitalityHealth’s Britain’s Healthiest Workplace study, in which RAND Europe and the University of Cambridge conducted analysis and research support. Thereport,Why Sleep Matters – The Economic Costs of Insufficient Sleep, involves independent research and analysis from RAND Europe.

About RAND Europe

RAND Europe is a not-for-profit organisation whose mission is to help improve policy and decisionmaking through research and analysis. Our clients include European institutions, governments, charities, foundations, universities and private sector firms with a need for impartial research. We combine deep subject knowledge across diverse policy areas including health, science and innovation; defence, security and infrastructure; and home affairs and social policy. Combined with proven methodological expertise in evaluation, impact measurement and choice modelling, we are able to offer quality-assured research and analysis, unbiased insights and actionable solutions that make a difference to people’s lives. www.randeurope.org

.

National Sleep Foundation (2013) reports the share of people sleeping less than 7 hours across five OECD countries as: Japan (56%), U.S. (45%), UK (35%), Germany (30%) and Canada (26%). See Table 1.1 in the report for more details.